Corporate Governance Quality and Its Influence on Sustainability Reporting Accuracy

Unofficial AI-generated summary based on the public title and abstract. Not an official translation.

🔬研究者:Researchers can use the findings to further explore governance-reporting accuracy links in other emerging markets or expand to climate-specific disclosures.

🏢実務担当者:Corporate sustainability teams can leverage the governance mechanisms identified (board independence, audit committees, internal controls) to enhance the reliability of their ESG reports.

🏛政策担当者:Policymakers in emerging economies may consider strengthening governance requirements to improve sustainability reporting accuracy.

Sustainability reporting has emerged as a crucial aspect of corporate accountability, driven by stakeholders' growing demand for reliable, transparent, and decision-useful environmental, social, and governance (ESG) disclosures. Nonetheless, issues regarding the precision of sustainability reporting remain significant, especially in developing economies like Bangladesh, where regulatory enforcement is still in progress. This study examines the impact of three essential governance mechanisms—board independence (BI), audit committee effectiveness (ACE), and internal control strength (ICS)—on the accuracy of sustainability reporting (SRA). A structured questionnaire was distributed to professionals in corporate governance across various industries, resulting in 170 valid responses. Employing SPSS version 26, the correlation analysis indicated moderate to strong positive associations between each governance mechanism and SRA. The most significant correlation was found for ACE (r = 0.522), followed by ICS (r = 0.487) and BI (r = 0.451). Regression analysis indicated that all three governance mechanisms are significant predictors of sustainability reporting accuracy: BI (β = 0.241, p < 0.01), ACE (β = 0.314, p < 0.01), and ICS (β = 0.287, p < 0.01). The governance variables together account for 47.3% of the variance in SRA (R2 = 0.473), highlighting a significant impact of governance on reporting reliability. The results provide strong empirical support for the hypothesis that companies with enhanced governance frameworks—marked by independent oversight, efficient audit committees, and robust internal controls—tend to produce precise and trustworthy sustainability disclosures. This study underscores the critical role of governance quality in bolstering reporting integrity. It provides actionable insights for policymakers, corporate boards, and regulatory bodies seeking to improve the accuracy of sustainability reporting in emerging markets.

• semanticscholar https://doi.org/10.59324/ejiss.2026.2(1).04first seen 2026-05-15 18:14:00 · last seen 2026-06-15 05:26:47